The Cost of Funds Invested in Inventories Is Measured by the ____

question 29

Multiple Choice

The cost of funds invested in inventories is measured by the ____.

• A) cost of insuring the inventory
• B) stockout costs
• C) required rate of return
• D) rate of interest on borrowed funds

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Definitions:

Full-Function Merchant Wholesaler

A wholesaler that provides a range of services including stocking inventory, operating warehouses, and offering credit to retailers.

Logistics

Process of coordinating flow of goods, services, and information among members of the supply chain.

Supply Chain

Complete sequence of suppliers that contribute to creating a good or service and delivering it to business users and final consumers.

Physical Distribution

Actual movement of products from producer to consumers or business users.